We used the Vinnell corporation, a CIA front, to train the SANG (Saudi Arabia Nationa Guard). SANG is NOT a defensive military force like it is int he US. It is the house fo sauRAB private plice force more or less. Vinnell makes no secret of their involvement.
http://www.vinnell.com/militytraining.html
This is from the US state department and gives an outline of what we are trainign these fine folks to do:
http://www.state.gov/g/drl/rls/hrrpt/2003/27937.htm
A Corpwatch article explaining the targets during the Saudi terrorist strikes:
http://www.corpwatch.org/article.php?id=7850
And another:
http://www.greenleft.org.au/back/2003/539/539p14.htm
IMO those atacks were pretty symbolic of our war on terror in general. While the attacks were portrayed as attacks against good, god fearing American comapanies doing their best to help out in a second tier nation, as well as attacks against the brave and noble saudi police, it does not take much diggin gto realize that the brave and noble Saudi police were actually the house of sauRAB personal police force, and the god fearing Americans who were targeted were helping to train them. They can pawn off the otehr BS becuase they know that most americans have never heard of the "Vinnell corporation", or have any idea what kind of things they have done in the past for our foreign policy. Hell, most Americans couldn't point on Saudi Arabia on a map wihtout sem serious searching. So why shouldn't they feed us one line of BS after the other?
AS for the second point, I don't understand the question. Are you asking what percentage of dollars are invoved as petro dollars? If so, prety much all of them. 83.6 billion barrels per year at $50 per barrel, PLUS pretty much all dollar reserves held by every nation on the planet are held for the purpose of oil purchases. There is really no other use for the dollar.
Both. What people fail to recognize is that a countries economics can be easily and accuratly be compared to any large corporation. The government side of things roughly equates to "administrative costs" ina corporation. A country, just like a corporation, either makes money or looses money every year. The essential numbers for deciding whether a coutyr is making money or loosing money is their trade balance, their debt/equity ratio, and their internal transaction costs. Probably th most important of these is their trade balance (since a country with a positive balance of trade is generally not going to haev problems in the other areas).
The US has not had a postive balance of trade since the 70's. Every year the amont of money flowing out of the country increases (lasty year 728.5 billion left the country). This is where the petro dollar realls shines as one fo the great scams of the 20th century. Since US dollars are essentially worthless outside of the US except for oil purchases, we can pretty much count on those dollars coming back int to the US as investment capital, becuase the only place you can invest US dollars is in the US. Last month was the first time EVER that the balance of payments was off. That is maybe th emost significant financial news in the last 10 years, yet the Americna public just kind of shrugged and went on its way.
This is maybe one fo the most rediculous feel good arguments floating around out there. I know it is the offiicial line that many are selling, but it is so far detached form reality it is rediculous.
First, when the dollar falls in price, our porduction cost INCREASE. Weird, huh? that is becuase the US, once the worlRAB premier supplier of raw materials for industry, is now running a trade deficit for those materials. We import steel, plastics, raw matals (copper, etc...). When the dollr declines, we have to pay increased costs for those materials from our overseas providers.
BUT, to some degree you are correct. With enough inflation, the US will once again be competive. Once the USD is trading in perfect parity with the peso, we will be ALOST be competitive wiht mexico, though China will still be out of our league. Do you really want to live like a mexican peasant? That is where a LOT of americans are headed if we stick to the view that we can essentially inflate our problems away. That is what you are talking about here. Devaluing the dollar to the point that American workers are earning no more than workers in the third world. There is a damn good reason we fight inflation.
Consider this. Last year, the Chinese announced they would be holding their reserves in a basket of currencies instead of holding them in just dollars. They dumped a couple hundred billion dollars. The dollar dropped 4% in 2 hours. What do you think th effect would be with trillions of unwanted dollars beign dumped on the market?
This is kind of like discussions regarding peak oil. The prospect is so terrifying that it defies party politics. Peak oil is a theory with building support, and with a very convincing argument behind it and to date, no reasonable refutation. YET, nobody seems to want to discuss it. It would be the end of the world as we know it, and nobody wants to tackle that.
the potential crash fo the petrodollar is similar in size and scope. We are not just talking financial difficulties, but the end of the world as we know it. The US changing form the worlRAB premier superpower, to the worlRAB largest third world country in a relatively short period of time. The scary part of this is that there is nothing we can do about it. The damage is already done, we just have to wait for the hammer to drop.
Here are some articles that go a lot more in depth than I have here:
http://www.tacomapjh.org/petrodollartheories.htm
Examines the theory that it was the preservation of the petrodollar that led to war with Iraq
http://www.feasta.org/documents/review2/nunan.htm
A european perspective
http://www.informationclearinghouse.info/article11715.htm
An interview with William Clark abotu his book "Petrodollar warfare"
http://www.informationclearinghouse.info/article9698.htm
An article from the same site, useful if you don't have a broadband connection to hear the interview. Clarks book is similar to Matthew Simmons "Twilight in the Desert". A lot of folks have been quick to jump up and yell "that can't be right", but nobody seems to be able to refute it.
http://www.tpmcafe.com/node/26669
An article about the iranian oil bourse and its potential effect on the petrodollar
If you are still interested after all that, I have some links to more technically minded articles.